Nonprofit Leadership Transitions and Succession Planning

Salon
Written By Anna Sibley

On June 5th, 2024, members of Collectivity’s ecosystem—clients, partners, and supporters—gathered to discuss Nonprofit Leadership Transitions and Succession Planning. Facilitators included Kate Barr, who recently transitioned from President / CEO of Propel Nonprofits, and Collectivity CEO and Co-founder Scott Cole. 11 of the 15 participants were either current or former Executive Directors, CEOs, or founders of organizations.

Types of Leadership Transitions

The Salon began with Kate highlighting her diverse leadership experiences and summarizing key takeaways from her various transitions. She explained that there are four types of leadership transitions: transitions due to crisis, transitions of opportunity, emergency transitions, and planned transitions. Each scenario brings its own unique challenges and dynamics. Going forward, the summary will focus predominantly on planned transitions.

Crisis Transition

A sudden leadership change triggered by an unexpected event involving the leader’s decision-making and/or behavior including scandal, misconduct, etc.

Opportunity Transition

 A swift, pre-arranged leadership change driven by the current leader accepting a new role or opportunity, requiring succession on short notice.

Emergency Transition

 A rapid leadership change necessitated by unforeseen issues affecting the current leader's ability to serve, such as illness or an accident.

Planned Transition

A well-organized, deliberate leadership change as a long-term leader steps down, typically due to retirement or a long-anticipated departure.

“If all of [an organization’s plans] are in place, then no matter what the circumstances of the leadership transition, it’s going to be hard, but you’ll be ready to do the hard.”

- Kate Barr

Phases of Leadership Transitions

Kate shared with the group that the typical Planning, Searching, & Onboarding framework for leadership succession overlooks two crucial steps. Based on her experience, the true phases of leadership transition include Readiness and Making Space on the front and back end of the traditional Planning, Search, & Onboarding. The important first step, Readiness, and the last step, Making Space, are crucial to the transition process, and the most successful plans invest the most in these two additional phases.

  • This stage involves preparing both the current leader and the organization for the upcoming transition. It includes assessing the organization's needs, planning communication strategies, and ensuring both the leader and the board are ready for the change. It's about separating the individual from the role and anticipating the impact on relationships and funding.

  • In this stage, detailed plans are made for the transition. This includes preparing for the search process, announcing the departure via a communications plan, documenting current relationships, securing access to important information like passwords and logins, and addressing any pressing organizational issues. It's about setting the stage for a smooth search and transition.

  • Initiating the actual process of searching for a new leader. During the planning stage, decisions about who carries this work is essential (eg. the board, outside agency, search committee, etc.) This part involves identifying potential candidates, communicating with candidates, and managing the search process itself. It's about finding the right fit for the organization's future and culture.

 

  • This stage includes both inducting the new leader and passing the baton from the departing leader. Reiterating the defined roles and responsibilities each will hold during the transition, ensuring there is no confusion, and confirming clear boundaries. Any overlap in duties should be intentional for training purposes. It also includes supporting the new leader as they settle into their role and start making it their own. Establishing a Transition Committee will help with this.

 

  • Post-transition, this stage focuses on supporting the new leader and stabilizing the organization. It includes ongoing communication, addressing any issues that arise, and ensuring the board remains engaged. It's about giving the new leader the space and support they need to succeed while maintaining organizational stability.

 

The Dos and Don’ts of Leadership Transitions

DON’Ts

  • Don’t fret too much over potential turnover in the months before and after a senior leadership transition; it's normal for most organizations. Luke Weisberg, Executive Director of the East Side Employment xChange, pointed out, “When an org can transition from a founder to a new leader… we should celebrate that the organization survived at all. Many don't!” While increased turnover should always prompt management to reflect on the organization’s health, it is okay to accept that leadership changes may impact existing staff. Changing roles and expectations can lead to departures.

  • Don’t be vague with the new role description of the departing leader (if they hold a transition role after the new leader steps in). Some of the most tense leadership transitions experienced by the salon participants were similar in that they shared the departing leader “lingering” in an ill-defined position after transition, undermining the authority of the new leader and confusing the board and staff. “The most successful founder transitions involve a [clear] role for the founder,” says Julie Bluhm, Interim CEO of Hamm Memorial Psychiatric Clinic. She goes on to explain it isn’t impossible or even necessarily a bad idea to involve former leadership in some capacity after they have left, but the key to success is having those projects be clear and distinct, with the ex-leader acting as a consultant and reporting to the new leader. Completing capital campaigns or closing specific side projects are examples of potentially acceptable roles departing leaders can maintain, but only if they defer authority to the new leader.

  • Don’t discount the readiness step. Readiness involves not only preparing the planning of leadership transitions but also ensuring the emotional well-being of all key players involved. Poorly communicated transitions can leave staff feeling abandoned and unsupported, potentially worsening turnover. Boards may need time to grasp their role and responsibilities in the succession planning process. External partners, such as funders or the general community, need assurance that the departing leader is leaving the organization strong and ready for the next phase, not abandoned. If any key players are unready, it can impact the entire transition process.

 

DOs

  • Do create robust plans that accommodate the needs of all key players impacted by the transition. For the second salon in a row, all attendees agreed that it’s “better to err on the side of over-communication.” You need a communications plan tailored to reassure both internal staff and external stakeholders and partners. Kate explained how at Propel, they had two committees dedicated to different aspects of the transition: the succession committee, tasked with conducting the replacement search and determining its process, and the transition committee, focused on the tactical steps and onboarding of the incoming CEO for the first year of employment.

  • When possible, widen the leadership and management team proactively for larger organizations, ideally years before a long-term leader’s departure. “Executive Directors are put into impossible positions doing the job of two or three people,” says Bo Thao Urabe, former Executive Director and Founder of the Coalition of Asian American Leaders (CAAL), to the agreement of the group. Kate shared a story of how in 2018, six years prior to her departure, she hired a Development Director to take on fundraising after doing it herself for seventeen years. This provided ample time for institutional knowledge and funder relationships to be transferred from Kate’s role and cultivated within a fundraising team. By the time of Kate’s departure, the fundraising team had already established strong relationships with partner organizations, in concert with Kate but not dependent on her. If nonprofit CEOs are doing the work of 2-3 people, it is prudent to audit their roles and responsibilities prior to their departure. But even better is to permanently shift tasks from the CEO's plate years in advance and create the infrastructure for those activities to be shared and independent of the departing leader.

  • Do elevate other leaders in your organization proactively. Executive Directors should already be highlighting the important work of their organization’s middle management, but it is even more crucial during and prior to an executive leadership transition. “We tend to work in a field that elevates just one person,” says Bo. A departing leader must reassure partners, staff, & board via regular & consistent communication. Scott added, “Departing leadership must reassure everyone that what we have created here is not just the [founder]’s creation... [we are] here today because of EVERYONE’s contributions.”

  • Acknowledge that transitioning away from incumbent leadership is difficult, even with successful succession plans. Eventually, the incoming successor will stop relying on the departing leader’s institutional knowledge and may take what has been built in unexpected directions. When speaking about the current state of her transition from Founder of RISE, Nausheena Hussain said, “[seeing the amazing work her successor Malika Dahir has been doing], I eventually got some FOMO… but that is exactly how it should be.” It can be challenging for nonprofit founders when their identity is tied up with the organization they create. Personal identities of founders or long-term leaders can be intertwined with their organizations, making separation delicate upon departure.

    Kate explained that she had to set the expectation for her board and staff that when her successor became comfortable in their role and saw room for improvement, there would be changes. “Don’t put me on a pedestal and try to focus on protecting my legacy…Henry Jimenez, Kate’s successor at Propel, is going to do things I would have never done; I have enormous respect for him. [These conversations with the board and staff] were all part of my own personal transition,” she said. In both Kate and Nausheena’s stories, it was important to acknowledge that their creations were going to live on without them, and despite whatever discomfort they may have felt, there is no more ideal way to part from something you’ve created than to know it will thrive after you've moved on.

 

Interested in Leadership Transition Planning?

If you are interested in learning more about succession planning for nonprofits we recommend you read Building Leaderful Organizations: Succession Planning for Nonrprofits published by the Annie E. Casey Foundation.

 

Thank you to Salon Participants!

Interested in attending? Complete the salon series interest form to let us know you’re interested and we will add you to the invitation list. This conversation would not have been possible if not for the salon participants. A special thank you to participants, listed in alphabetical order by first name.

Anna Sibley
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